Government to raise GH¢2.89 billion from Treasury bills this week

The government has set a target of GH¢2.89 billion to be secured from the sale of the 91, 182, and 364-day treasury bill auction to be held on Friday, February 24, 2023.

Treasury bills have seen a constant oversubscription recently after the announcement of the conclusion of the debt exchange programme.

It saw an oversubscription of over GH¢1 billion in its last auction.

The oversubscription can be linked to strengthened investor confidence as the government has assured the safety of its yields.

Interest rates are currently high and may be a good signal for investors to invest for higher yields but analysts have warned that this may cost the government when the maturity dates are due.

However, the government has stated that treasury bills and concessional loans are its primary source of borrowing as the country has been shut out of the international market.

It also announced the settlement and conclusion of the Domestic Debt Exchange Programme, a key requirement for the progression of talks with the IMF.

Government will, however, go to the IMF board for approval for its Post COVID-19 economic recovery programme in March after it has met some key requirements.

SSD/FNOQ